At Maker Faire in San Mateo a week ago I saw a demo of Rasberry Pi running Ubuntu Linux with an HDTV display. It was running some HD video demo and the image quality was great. They claim it will run Myth TV. With a network file system this should make a great Entertainment/Media Center PC. I do not think anyone should expect it to function as a desktop PC replacement.

raspberry pii has half the ram and a slower arm11 core but a better gpu.
These small systems are nice but not completely up to desktop replacement yet.
They are great for low power network sensor systems or as a sensor integrator (rtu)/pac controller.
The ARM cortex A8 and 9 based ones are closer to being a desktop replacement but it'll take the next gen ones to get there.
Problem with most of these small systems is they still depend on proprietary binary globs for gpu and other drivers.
Next gen beagle or pandaboard with omap5 should do it.

"APC consumes only 4 watts when operating at idle power and 13.5 watts at maximum load—10 times less than a standard PC system." Is it an apple to apple comparison? It is difficult to believe a $25 Android computer can be as fast as a PC consuming 135W?
There is a typo, "VGA and HMDI display ports" shall read "VGA and HDMI display ports"

Is MS-office like office productivity suite available on Android?
What are the preloaded Apps ?
Is there at least a browser that gets you connected to the internet world?
Or is it just a piece of hardware like the P motherboard?